The Effect of Price Perception and Brand Image on Consumer Purchase Intention for IndiHome WiFi Services in Surabaya

Bintang Adrian Maulana; Nuruni Ika Kusuma Wardhani

Bintang Adrian Maulana Universitas Pembangunan Nasional "Veteran" Jawa Timur, Surabaya, Indonesia
Nuruni Ika Kusuma Wardhani Universitas Pembangunan Nasional "Veteran" Jawa Timur, Surabaya, Indonesia

Keywords: Brand Image, IndiHome, Price Perception, Purchase Intention, PLS-SEM

Abstract

This study examines the effect of price perception and brand image on purchase intention toward IndiHome WiFi services in Surabaya City. IndiHome, operated by PT Telekomunikasi Indonesia Tbk, faces intensifying competition from First Media, Biznet, and other internet service providers, alongside a declining Top Brand Index and a high proportion of negative customer reviews. This study addresses the problem of what role price perception and brand image play in shaping consumer purchase intention amid this competitive pressure. Using a quantitative approach, primary data were collected from 120 respondents in Surabaya selected through purposive sampling and analyzed with Partial Least Squares Structural Equation Modeling (PLS-SEM) in SmartPLS 4.0. The results show that price perception and brand image each have a positive and significant effect on purchase intention, with brand image exerting the relatively stronger influence; together the two variables explain a substantial share of the variance in purchase intention. These findings suggest that IndiHome should manage price fairness and brand reputation jointly to sustain consumer purchase intention in a highly competitive urban market.

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